Agenda packet — Foster City City Council, February 26, 2024

CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

Members of the public wishing to speak will be asked to fill out a Request to Speak Form. Forms will be accepted until the staff presentation on an agenda item ends, or until the public comment period on non agenda items is closed. For special meetings, public comment is limited to item(s) on the agenda only.

To Observe the Meeting via Teleconference/Video Conference:

To access the meeting by computer / smartphone, go to: https://fostercityorg.zoom.us/j/82592136594 To dialin via phone:
16694449171 or
14086380968
And enter Webinar ID: 825 9213 6594
To Participate in the Meeting by Providing Public Comment via Teleconference/Video Conference:

During the Meeting: Live verbal public comments may be made by members of the public joining the meeting via Zoom. Zoom access information is provided above. Use the “raise hand” feature (for those joining by phone, press *9 to “raise hand”) during the public comment period for the agenda item you wish to address. The Zoom Host will call on people to speak by name provided or last 4 digits of phone number for dialin attendees. Please clearly state your full name for the record at the start of your public comment.

Before the Meeting: Written public comments for the record may be submitted in advance by 4:00 p.m. the day of the meeting by email to: [email protected] and will be made part of the written record but will not be read verbally at the meeting. Written public comments submitted by email should adhere to the following:

Clearly indicate the Agenda Item No. or specify “Public” in the Subject Line for items not on the agenda Include the submitter’s full name (Recommended but not required) Written public comments received by 4:00 p.m. the day of the meeting will be provided in their entirety to the City Council prior to the meeting and will be made part of the written record but will not be read verbally at the meeting.

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, February 26, 2024 6:30 PM
SPECIAL MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Art Kiesel, Stacy Jimenez, and Mayor/President Patrick Sullivan

3. PUBLIC
Pursuant to Government Code Section 54954.3(a), members of the public wishing to address the Council may do so, and the comments shall be limited to the Special Meeting notice topic(s). Speakers may join the Zoom meeting via the meeting link and using the “raise hand” feature and the Zoom host will call on people.

5. STUDY SESSION

5.1. 2nd Quarter FY 202324 Financial Update
a) Staff Report
b) Action By Minute Order, Receive and Accept Report

5.2. Preparation of the FY 20242025 Annual Budget and FiveYear Financial Plan
a) Staff Report
b) Action By Minute Order, Provide Policy Direction

6. ADJOURNMENT
The public is invited to attend.

Any attendee wishing special accommodations at the meeting should contact the City Clerk’s Department at (650) 2863250 or [email protected] at least 48 hours in advance of the meeting. The City has a procedure for receiving and swiftly resolving requests for reasonable accommodation for individuals with disabilities, consistent with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and resolving any doubt in favor of accessibility.

That procedure for receiving and resolving requests for accommodation is available at the City Clerk’s Office. All meetings are conducted in a manner consistent with applicable civil rights and nondiscrimination laws.

Any writings or documents provided to a majority of the City Council or EMID Board regarding any item on this agenda after the agenda packet was distributed will be made available for public inspection in the City Clerk Department at City Hall located at 610 Foster City Boulevard during normal business hours and at the meeting.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

LIVE every 1st and 3rd Monday of the month
REPLAY next day at 1:00 pm (that week only)
REPLAY Saturday at 5:00 pm (only on Saturday the week the actual meeting occurs) City Council meetings on https://www.fostercity.org/community/page/fctvlivestream:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

1 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, February 26, 2024 6:30 PM
SPECIAL MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Art Kiesel, Stacy Jimenez, and Mayor/President Patrick Sullivan

5. STUDY SESSION

5.1. 2nd Quarter FY 202324 Financial Update
a) Staff Report
b) Action By Minute Order, Receive and Accept Report

5.2. Preparation of the FY 20242025 Annual Budget and FiveYear Financial Plan
a) Staff Report
b) Action By Minute Order, Provide Policy Direction

6. ADJOURNMENT
The public is invited to attend.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

2 CITY OF FOSTER CITY/
ESTERO MUNICIPAL IMPROVEMENT DISTRICT
FOSTER CITY COUNCIL CHAMBERS
620 FOSTER CITY BOULEVARD
FOSTER CITY, CALIFORNIA
MEMBERS OF THE PUBLIC THAT WISH TO ATTEND AND/OR PARTICIPATE IN A MEETING MAY DO SO IN PERSON OR BY JOINING THE ZOOM MEETING HTTPS://FOSTERCITY ORG.ZOOM.US/J/82592136594 PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND VIA ZOOM MEETING. ANY EMAILS SENT TO [email protected] WILL BE PROVIDED TO THE CITY COUNCIL PRIOR TO THE MEETING.

To Attend the Meeting in Person:

Location: 620 Foster City Blvd, Foster City, California, 94404 To Provide Public Comment in Person:

To Observe the Meeting via Teleconference/Video Conference:

Written public comments will be posted to the City’s website for review prior to the meeting.

AGENDA
Monday, February 26, 2024 6:30 PM
SPECIAL MEETING AS CITY COUNCIL/EMID BOARD OF

DIRECTORS

1. CALL TO ORDER

2. ROLL CALL
Councilmembers/ex officio EMID Directors Jon Froomin, Sam Hindi, Art Kiesel, Stacy Jimenez, and Mayor/President Patrick Sullivan

5. STUDY SESSION

5.1. 2nd Quarter FY 202324 Financial Update
a) Staff Report
b) Action By Minute Order, Receive and Accept Report

5.2. Preparation of the FY 20242025 Annual Budget and FiveYear Financial Plan
a) Staff Report
b) Action By Minute Order, Provide Policy Direction

6. ADJOURNMENT
The public is invited to attend.

City Council meetings on FCTV on Comcast Channel 27 and AT&T Channel 99:

STREAMED LIVE every 1st and 3rd Monday of the month
City Council meetings ondemand:
https://www.fostercity.org/agendasandminutes

3 DATE: February 26, 2024

TO: Mayor and Members of the City Council

VIA: Stefan Chatwin, City Manager

FROM: Edmund Suen, Finance Director

SUBJECT: 2ND QUARTER FY 2023-24 FINANCIAL UPDATE

RECOMMENDATION
It is recommended that the City Council, by Minute Order, receive and accept the report on the 2nd Quarter FY 2023-24 Financial Update.

EXECUTIVE SUMMARY
City staff has prepared the attached Second Quarter FY 2023-24 Financial Update report, also known as the Mid-Year Financial Report. General Fund revenues (Funds 001 to 003) for the six-month period were $31.23 million. Revenue and expenditures projections for the full year are $60.83 million and $59.35 million respectively. After adding Transfers in of $21,948 from the Foster City Foundation Fund and Transfers Out of $6.0 million to the City CIP Fund and $41,983 to the Low-and-Moderate Income Housing Fund, the estimated FY 2023-24 deficit is $4.54 million. Property Tax revenues, including ERAF refunds, are projected to reach $37.95 million. FY 2023-24 property tax in lieu of vehicle license fees (VLF) is anticipated to be $3.74 million with five non-basic aid school districts versus six in the prior year, which in turn means less available property tax revenues to fund the FY 2023-24 VLF. San Mateo County continues to work with the State for a permanent solution for VLF shortfalls. Staff notes that the State did not include San Mateo County's FY 2022-23 shortfall of $70.05 million (FC's portion is $1,398,496) in its January 2024 proposed FY 2024-25 budget. Transient Occupancy Tax (TOT) gains for the six-month period through 12/31/23 were encouraging. As a result, full-year projections are now $3.95 million vs. budgeted estimates of $3.56 million. Although there has been talk of interest rate reductions over

5.1 5.1 Staff Report

4 the past few months, the Federal Reserve has maintained its Fed Funds rate of 5.25% to 5.50% since July 2023. Based on the longevity of these high rates, the City’s investment income projections have been lifted across multiple Funds, including a $1.1 million increase for the General Fund.

At the 6-month mark, General Fund (Funds 001 to 003) operating expenditures were

48.4% of its amended budget or $28.72 million and included 9 months of funding to San Mateo Consolidated Fire Department for the City’s shared costs for fire protection and prevention services. City staff expects full year General Fund operating expenditures to be below the City’s operating budget of $59.35 million (before Transfers Out) and once full year staff vacancy savings are tabulated at year end, additional budget savings are expected. Expenditures for the City’s other Governmental Funds, Internal Service Funds, and the District’s Water and Wastewater Funds are performing generally as expected.

BACKGROUND/ANALYSIS
The City Council and City staff have committed to providing quarterly financial updates at City Council meetings to review quarterly financial performance and identify general economic trends and specific issues that may affect, positively and negatively, the City’s financial condition.

The report is intended to provide high-level financial information for the City Council, City Departments, and the community as a whole. Supplemental revenue and expenditure analyses are also provided for those readers desiring more detailed financial information.

FISCAL IMPACT
There is no fiscal impact associated with this report.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Innovation and Sustainability
Attachments:
•Attachment 1 - Foster City Financial Update FY 2023-24 Q2 (for the six months ended December 31, 2023)
•Attachment 2 – Second Quarter Projections for the Fiscal Year Ended June 30, 2024
•Attachment 3 - Comparison of Budget vs. Actual and Prior Year's Revenues (for the six months ended December 31, 2023)

5.1 5.1 Staff Report

5 •Attachment 4 - Comparison of Budget vs. Actual and Prior Year's Expenditures (for the six months ended December 31, 2023)

5.1 5.1 Staff Report

6 Live, Work & Play
in Foster City
City of Foster City
Financial Services Dept.

Positive revenue growth trends for the fiscal year is expected to help alleviate the projected General Fund deficit from $6.32 million to $4.54 million
The FY 23/24 adopted General Fund budget (Funds
001 to 003) included a projected deficit of $6.32
million, inclusive of a $6.0 million transfer out to
the City’s CIP Fund. Improvements in several rev-
enue categories during th e 1st half of the fiscal
year as well as a favorable outlook is prompting a
projected reduction of our projected deficit to
$4.54 million.

Total General Fund Revenues (Funds 001 to 003)
for the 6 month period were $31.23 million. Prop-
erty tax revenues including ERAF refunds were
$19.94 million compared to $18.91 million in the
prior year. Having received our 1st installment of
ERAF, the full year projection has been revised to
include the second insta llment payment expected
later this year. Property tax in Lieu of Vehicle Li-
cense Fes declined from $4.41 million to $2.20 mil-
lion as the City received a $2.01 million VLF short-
fall payment from the State via the County in FY
22/23 verses a VLF shortfall payment of $667,557
in the current fiscal year . In addition, since there
are only five non-basic aid school districts this fiscal year compared to six in the prior fiscal year, the
County has less available pr operty tax revenues to
fund this year’s VLF. Hence, this year’s VLF short-
fall is estimated to be $114.39 million (FC’s portion
is $2,285,850) compared to last year’s shortfall of
$70.05 million (FC's portion is $1,398,472). As a
result, staff is reducing this year’s VLF revenue pro-
jection by $652,000 from $4.39 million to $3.74
million. Sales tax improved by $124,000 to $1.96
million compared to the pr ior year. Transient Oc-
cupancy Taxes continued its recovery, improving
from $1.56 million to $2.01 million. Recreation
fees climbed $229,000 to $1.01 million. Invest-
ment income jumped $729,000 to $1.14 million as
the higher Fed Funds rate have remained un-
changed at 5.25% to 5.50% since July 2023. Inter-
governmental revenues declined by $4.12 million as
one-time ARPA (American Rescue Plan Act) fund-
ing ended last fiscal year.

General Fund expenditures (Funds 001 to 003) to-
taled $28.72 million or 48.4% of the annual budget
compared to last fiscal year’s mark of $29.68 million
with unfilled positions still an ongoing challenge. The wage COLA for FY 2023-24 was 4.2% for the both
the POA bargaining unit and the Management unit.

The AFSCME unit finalized their labor agreement in
October 2023 with a 5% COLA adjustment retroac-
tive July 1, 2023. The City made 3 quarterly pay-
ments to San Mateo Consolidated Fire for its 20%
shared costs for fire protection and prevention ser-
vices.

Expenditures for many of the City’s special revenue
funds, including Measure A, Measure M, SB1, and
Measure W funds are non-linear and commonly pro-
gram and/or project driven. Water and Wastewater
Enterprise operating revenues were 14.7% and 11.9%
ahead of last year’s pace due to a combination of new
rate increases that took effect July 1 and higher in-
vestment income. Water operating expenditure
were 8.8% higher due to higher wholesale water
rates and a general increase in operating and labor
costs. Wastewater expenditures were 3.8% higher.

Notwithstanding, these enterprise fund expenditures
were well within the budget for the six month period
and are expected to be withi n full year’s targets by
year-end.

As stated earlier, the City continues to experience
difficulties in filling vacant positions, including eco- nomic development manager, human resources man-
ager, and police officers. The projected multi-year
structural deficits, cost impacts from two consecutive
years of CalPERS underperformance of investment
returns (a negative 6.1% return in FY 21/22 and a

5.8% return in FY 22/23 compared to their 6.8% an-
nual target), annual VLF shortfalls and the State’s pos- turing in possibly not backfilling these vital revenues are some of the major challenges as City staff begins
the preparation of its FY 24/25 budget and 5-year
financial plan.

Foster City Financial
Update FY 23/24 Q2

5.1 Attachment 1 - Quarterly Financial Update FY23-24 Q2

7 ATTACHMENT 2

CITY OF FOSTER CITY / EMID
Summary of Resources and Requirements by Funds
For the Fiscal Year Ended June 30, 2024
SECOND QUARTER PROJECTIONS THROUGH JUNE 30, 2024
Less:

Total Fund
Balance
July 1, 2023
Estimated
Operating
Net Increase
(Decrease) in
Reserves
Total Fund
Balance
June 30, 2024
Nonspendable,
Restricted,
Committed
Available/
Unassigned
June 30, 2024
Estimated
Revenues
Capital
Expenditures
Total
RequirementsFund Transfers In Transfers Out Total Available Expenditures General Funds
001
002
003
005
006
007
008
009
010
011
012
General Fund Operating
General Fund-District
$
$
$
$
$
$
$
$
$
$
$
$
56,921,885
1,845,803
36,980
$
$
$
$
$
$
$
$
$
$
$
$
19,108,969
39,664,500
2,055,063
39,400
$
$
$
$
$
$
$
$
$
$
$
$
41,162,642 $
$
$
$
$
$
$
$
$
$
$
$
7,207,212 $
$
$
$
$
$
$
$
$
$
$
$
109,986,284
369,609
3,257,272
1,219,793
43,433
$
$
$
$
$
$
$
$
$
$
$
$
55,719,071
369,609
3,257,272
349,667
38,366
25,000
-
$ -
-
-
-
-
-
-
-
-
-
-
-
$ 55,719,071
369,609
3,257,272
349,667
38,366
25,000
-
$ (2,654,672)
(1,845,803)
(36,980)
(310,267)
(36,666)
(22,700)
1,800
$
$
$
$
$
$
$
$
$
$
$
$
54,267,213
-
$
$
$
$
$
$
$
$
$
$
$
$
150,653 $ 54,116,560
-- 41,140,694 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
- $
$
$
$
$
$
$
$
$
$
$
General Fund-Special Recreation
Community Benefits Program Fund
DARE
1,165,229 - - - -
1,180,393
41,733
- - 870,126
5,067
- 870,126
5,0671,700 - - -
Solar Incentive Grant Program
Employee Rental Assistance Program
Asset Seizure
68,884 2,300 - - 71,184 46,184
63,659
22,756
98,514
2,577,574
147,359
58,098,452
- 46,184
63,659
22,756
98,514
2,577,574
147,359
57,947,799
61,859 1,800 - - 63,659 -
24,853 2,000 - - 26,853 4,097 4,097 (2,097) -
Discretionary Pension Liability Stabilization Fund
Facilities Replacement Fund
Sustainable Foster City
94,514 4,000 -
-
- 98,514 - - 4,000 -
2,474,874
207,804
62,959,582
102,700
10,500
-
-
2,577,574
268,304
117,982,479
- - 102,700
(60,445)
(4,861,130)
-
-50,000
42,377,871
120,945
59,884,027
120,945
59,884,027Subtotal General Funds 60,992,932 48,347,906 150,653 Special Revenue Funds
101
102
103
104
105
108
114
116
119
122
124
125
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
Traffic Safety $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
7,497
4,686,950
517,184
2,902,945
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
60,000
1,050,200
936,607
120,100
121,700
155,000
532,077
38,900
841,962
185,500
37,000
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
- $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
- $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
67,497
5,737,150
1,453,791
3,023,045
121,700
155,000
991,412
430,164
1,705,779
2,668,838
4,679,671
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
60,000
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
- $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
60,000
4,253,588
935,549
745,435
100,000
100,000
783,050
136,250
455,057
146,620
235,000
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
-
(3,203,388)
1,058
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
7,497
1,483,562
518,242
2,277,610
21,700
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
7,497
1,483,562
518,242
2,277,610
21,700
Measure A - - 4,253,588
Gas Tax (2103, 2105-2107.5)
Park In-Lieu Fees
- - 16,483
-
919,066
- - 745,435 (625,335)
21,700
55,000
(250,973)
(119,298)
386,905
80,863
(198,000)
-
Measure M - - - 100,000
SLESF/COPS Grant - - - 100,000
783,050
136,250
-
- 55,000 55,000
CalOpps.org 459,335
413,212
863,817
2,441,355
4,642,671
-
- - - 208,362
293,914
1,250,722
2,522,218
4,444,671
-
208,362
293,914
1,250,722
2,522,218
4,444,671
-
Foster City Foundation - 21,948 -
SB1 Road Maintenance and Rehabilitation
Low- and Moderate-Income Housing Fund
City Affordable Housing Fund
Sustainable Foster City Fund (Discontinued)
BAERS (Discontinued)
- - 455,057
41,983 - 146,620
235,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- -
- -
- - - - - - - - - -
General Plan Maintenance Fund
Construction & Demolition Recycling Fund
Technology Maintenance Fund
SB 1186 Fund
1,927,194
758,768
226,770
39,618
5,385
84,300
79,600
41,740
5,700
- 2,011,494
788,368
268,510
45,318
167,400
309,750
105,485
1,300
500
- 167,400
309,750
105,485
1,300
(83,100)
(280,150)
(63,745)
4,400
1,844,094
478,618
163,025
44,018
1,844,094
478,618
163,025
44,018
50,000 -
-
-
-
-
-
-
-
-
-
SMIP Fee Fund 620 6,005 - 500 120 5,505 5,505
CRV Grant Fund 14,124
253,249
6,928
9,040 23,164 21,919
25,000
500
- 21,919
25,000
500
(12,879)
400
1,245 1,245
Curbside Recycling Fee Fund
Green Building Fee Fund
Measure W
25,400
1,000
278,649
7,928
- 253,649
7,428
253,649
7,428- 500
1,234,883
588,598
234,143
158,351
22,418
31,221
-
479,700
5,104,990
9,800
1,714,583
5,693,588
243,943
795,791
51,318
815,215
10,000
51,640
386,187
-
- 815,215
10,000
51,640
386,187
-
(335,515)
5,094,990
(41,840)
251,253
28,900
(28,615)
594,113
64,320
121,869
1,463,553
899,368
5,683,588
192,303
409,604
51,318
899,368
5,683,588
192,303
409,604
51,318
Commercial Linkage Fee
Tenant Relocation Assistance
Workforce Housing
-
$
$
$
$
$
$
$
$
- $
$
$
$
$
$
$
$
- -
637,440
28,900
1,300
- - -
Equipment Replacement-Workforce Housing
SB 1383 Implementation
Park Facilities Impact Fee
Public Safety Impact Fee
Transportation Impact Fee
- - -
- - 32,521 29,915
-
- 29,915
-
2,606 2,606
594,113
64,320
121,869
11,368,878
- - 594,113
64,320
- 594,113
64,320
594,113
64,320- -
-
-
-
- -
-
-
- 121,869
33,775,529
- - 121,869
23,900,169
121,869
23,900,169Subtotal Special Revenue Funds 22,436,616 41,983 71,948 3,402,214 6,473,146 9,875,360 (Continued on next page)

5.1 Attachment 2 - Second Quarter Projections Through June 30, 2024

8 ATTACHMENT 2

CITY OF FOSTER CITY / EMID
Summary of Resources and Requirements by Funds
For the Fiscal Year Ended June 30, 2024
(Continued from previous page) SECOND QUARTER PROJECTIONS THROUGH JUNE 30, 2024 Less:

Total Fund
Balance
July 1, 2023
Estimated
Operating
Net Increase
(Decrease) in
Reserves
Total Fund
Balance
June 30, 2024
Nonspendable,
Restricted,
Committed
Available/
Unassigned
June 30, 2024
Estimated
Revenues
Capital
Expenditures
Total
RequirementsFund Transfers In Transfers Out Total Available Expenditures Debt Service Fund
230
231
Levee Debt Service Fund 2020 GO Bonds
Levee Debt Service Fund 2023 GO Bonds
$
$
$
5,505,921
-
$
$
$
4,011,500 $
$
$
-
-
-
$
$
$
-
-
-
$
$
$
9,517,421
230,451
$
$
$
-
-
-
$ 5,349,188
109,513
$ 5,349,188
109,513
$ (1,337,688)
120,938
$
$
$
4,168,233
120,938
$
$
$
-
-
-
$ 4,168,233
120,938230,451 $
$
$
$
$
$
$
$Subtotal Debt Service Funds 5,505,921 4,241,951 9,747,872 5,458,701 5,458,701 (1,216,750) 4,289,171 4,289,171 Capital Projects Funds
301
326
327
328
Capital Investment - City $
$
$
$
$
77,484,134
2,880,118
5,080,547
-
$
$
$
$
$
3,523,950
1,268,655
38,400
$
$
$
$
$
6,000,000 $
$
$
$
$
- $
$
$
$
$
87,008,084
4,148,773
10,134,684
-
$
$
$
$
$
-
-
-
-
-
$
$
$
$
$
4,395,000 $
$
$
$
$
4,395,000 $
$
$
$
$
5,128,950
1,268,655
(4,384,775)
-
$
$
$
$
$
82,613,084
4,148,773
695,772
-
$
$
$
$
$
64,260,349 $
$
$
$
$
18,352,735
4,148,773
695,772
-
Capital Asset Acquisition and Replacement Fund
Levee Project Fund GO Bonds
-
5,015,737
-
-
-
-
9,438,912
-
-
9,438,912
-
-
-
-Levee Project Fund - 2023 GO Bonds 5,015,737
9,846,742
5,015,737
5,015,737Subtotal Capital Projects Funds 85,444,799 11,015,737 101,291,541 13,833,912 13,833,912 2,012,830 87,457,629 64,260,349 23,197,280 Enterprise Funds
Water Funds
401
405
408
409
Water Revenue $
$
$
$
$
10,347,049
28,827,164
4,070,150
1,206,901
44,451,264
$
$
$
$
$
18,991,500
-
$
$
$
$
$
- $
$
$
$
$
1,120,000 $
$
$
$
$
28,218,549
31,047,164
4,518,247
392,460
$
$
$
$
$
16,219,700 $
$
$
$
$
-
-
-
-
-
$
$
$
$
$
16,219,700 $
$
$
$
$
1,651,800
2,220,000
199,097
$
$
$
$
$
11,998,849
31,047,164
4,269,247
392,460
$
$
$
$
$
-
25,410,707
156,467
-
$
$
$
$
$
11,998,849
5,636,457
4,112,780
392,460
Capital Investment - Water
Water Equipment Replacement
Water Connection Fee
2,220,000 -
-
-
249,000
-
-
249,000
-
448,097
285,559
19,725,156
-
- 1,100,000
2,220,000
(814,441)
3,256,456Subtotal Water Funds 2,220,000 64,176,420 16,468,700 16,468,700 47,707,720 25,567,174 22,140,546 Wastewater Funds
451
453
454
455
456
458
459
460
461
Wastewater Revenue $
$
$
$
$
$
$
$
$
$
27,456,097
2,000,000
(38,478,808)
157,697,380
1,478
$
$
$
$
$
$
$
$
$
$
22,652,700 $
$
$
4,275 $
$
$
$
$
$
$
$
$
$
27,863,964 $
$
$
$
$
$
$
$
$
$
22,249,108
2,000,000
(36,389,583)
194,562,232
-
$
$
$
$
$
$
$
$
$
$
9,981,803 $
$
$
$
$
$
$
$
$
$
- $
$
$
$
$
$
$
$
$
$
9,981,803 $
$
$
$
$
$
$
$
$
$
(15,188,792) $
$
$
12,267,305
2,000,000
$
$
$
$
$
$
$
$
$
$
- $
$
$
$
$
$
$
$
$
$
12,267,305
2,000,000
(38,253,299)
128,455,721
-
Wastewater Rate Stabilization Fund
San Mateo-Foster City Public Financing Authority Loan
Capital Investment - Wastewater
Wastewater Plant Expansion
- 2,089,225 2,089,225 - - -
1,863,716
11,729,789
-
- -
-
-
2,089,225 - 1,863,716 - 225,509 (38,253,299) -
36,864,852 - - 11,729,789 25,135,063 $ 182,832,443 54,376,722 2,797 $
$
$
$
$
$
- 4,275 -
423,501
3,144,950
-
- (1,478)
(80,546)
$
$
$
$
$
$
- -
Wastewater Equipment Replacement
Wastewater Notes/WIFIA Loan Fund
Wastewater Connection Fees
4,027,644
(59,130,828)
347,531
342,955
63,600
729,460
-
- - 4,370,599
(55,922,278)
1,076,991
(14,235,063)
117,712,006
- 423,501
3,144,950
-
3,947,098 1,522,670 2,424,428
(59,067,228)
1,076,991
(14,235,063)
34,668,855
3,144,950 -
-
- 63,600 (59,067,228)
1,076,991
-
-
-
-
-
729,460 -
-State Revolving Loan Fund - 14,235,063
44,192,527
- - (14,235,063)
(3,352,247)
(14,235,063)
90,568,247Subtotal Wastewater Funds
Subtotal Enterprise Funds
Internal Service Funds
93,920,494 23,791,512 44,192,527 15,413,970 11,729,789 27,143,759 55,899,392 $ 138,371,758 $ 43,516,668 $ 46,412,527 $ 46,412,527 $ 181,888,426 $ 31,882,670 $ 11,729,789 $ 43,612,459 $ (95,791) $ 138,275,967 $ 81,466,566 $ 56,809,401 501
502
503
504
505
507
508
509
Vehicle Replacement
Equipment Replacement
Self-Insurance
$
$
$
$
$
$
$
$
$
7,918,311
9,107,957
973,000
$
$
$
$
$
$
$
$
$
2,230,973
362,663
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
$
$
$
$
$
$
$
$
$
10,149,284
9,470,620
2,516,261
8,772,883
12,000,141
3,039,554
6,879,138
4,131,556
56,959,437
$
$
$
$
$
$
$
$
$
2,134,551
529,500
$
$
$
$
-
-
-
-
$
$
$
$
$
$
$
$
$
2,134,551
529,500
$
$
$
$
$
$
$
$
$
96,422
(166,837)
10,454
$
$
$
$
$
$
$
$
$
8,014,733
8,941,120
983,454
$
$
$
$
$
$
$
$
$
1,722,153 $
$
$
$
$
$
$
$
$
6,292,580
6,689,496
983,454
2,251,624
1,543,261
2,872,084
3,926,645
379,200
1,532,807
2,892,584
2,974,968
238,420
1,532,807
2,892,584
2,974,968
238,420
-
Information Technology
Building Maintenance
Longevity Recognition Benefits
PEMHCA Benefits Plan
Compensated Absences
5,900,799
8,073,496
2,660,354
6,287,275
3,464,914
44,386,106
(20,500)
951,677
140,780
346,020
165,923
1,523,939
5,880,299
9,025,173
2,801,134
6,633,295
3,630,837
45,910,045
- 5,880,299
9,025,173
2,801,134
6,633,295
3,630,837
41,936,268
-
$
$
$
$
-
-
-
-
-
591,863 245,843 245,843 -
-666,642 500,719 500,719
Subtotal Internal Service Funds 12,573,331 11,049,392 11,049,392 3,973,777 Agency Fund
604
607
608
Successor Agency of Community Development Agency
Tourism Assessment
SMC Fire
$
$
$
$
(590,865) $
$
$
$
293,200
-
320,000
613,200
$
$
$
$
-
-
-
-
$
$
$
$
-
-
-
-
$
$
$
$
(297,665)
-
320,000
22,335
$
$
$
$
508,051
-
320,000
828,051
$
$
$
$
-
-
-
-
$
$
$
$
508,051
-
320,000
828,051
$
$
$
$
(214,851) $
$
$
$
(805,716) $
$
$
$
-
-
-
-
$
$
$
$
(805,716)
-
-
-
-
-
-
-
-
Subtotal Agency Fund (590,865) (214,851) (805,716) (805,716) Total All Funds $ 358,513,917 $ 143,153,702 $ 99,848,118 $ 99,848,118 $ 501,667,619 $ 107,046,354 $ 37,495,548 $ 144,541,902 $ (1,388,200) $ 357,125,717 $ 149,851,345 $ 207,274,372

5.1 Attachment 2 - Second Quarter Projections Through June 30, 2024

9 Attachment 3

CITY OF FOSTER CITY/ESTERO MUNICIPAL IMPROVEMENT DISTRICT COMPARISON OF BUDGET VS. PROJECTED ACTUAL REVENUES

BUDGET VS ACTUAL & CURRENT VS PRIOR
FOR THE SIX MONTHS ENDED DECEMBER 31, 2023
FY 2023-24

AMENDED
ACTUAL
FY 2023-24

ACTUAL ACTUAL
FY 2021-22

YR OVER YR

FAVORABLE
% OF BUDGET
FY 2023-24
% OF BUDGET
FY 2022-23ABOVE (BELOW)

ANNUAL BUDGET
FY 2022-23
6 MONTHS
%
6 MONTHS 6 MONTHS (UNFAVORABLE) INCREASE 6 MONTHS 6 MONTHS Fund BUDGET PROJECTED $ % AS OF 12/31/2023 AS OF 12/31/2022 AS OF 12/31/2021 VARIANCE (DECREASE) AS OF 12/31/2023 AS OF 12/31/2022 GENERAL FUND (FUNDS 001-003)
002 PROPERTY TAXES
SECURED $
$
$
$
$
32,100,000
1,315,000
969,300
$ 32,100,000
1,315,000
969,300
$
$
$
$
$
-
-
-
-
-
-
$
$
$
$
$
16,624,403
1,263,415
267,613
$
$
$
$
$
15,823,899
1,123,088
349,556
$
$
$
$
$
14,698,246
1,110,211
150,753
$
$
$
$
$
800,504 5.1%

12.5%
(23.4%)

10.6%

5.4%

51.8%

96.1%

27.6%
109.9%

55.4%

51.4%

86.1%

47.8%

99.1%

54.9%
UNSECURED $
$
$
$
140,327
(81,943)
171,199

SUPPLEMENTAL
ERAF
002 PROPERTY TAXES
1,619,850
36,004,150
3,541,000
37,925,300
1,921,150
1,921,150
118.6%

5.3%
1,779,772
19,935,203
1,608,573
18,905,116
1,597,263
17,556,473(1)
(1)
1,030,087
001 PROPERTY TAX IN-LIEU OF VEHICLE LICENSE FEE $ 4,387,980 $ 3,736,375 $ (651,605) (14.8%) $ 2,200,791 $ 4,407,088 $ 1,808,653 $ (2,206,297) (50.1%) 50.2% 96.2% 001 OTHER TAXES
SALES AND USE $
$
$
$
$
3,927,700
3,559,800
1,266,200
311,000
$
$
$
$
$
3,927,700
3,950,300
1,266,200
311,000
$
$
$
$
$
- - $
$
$
$
$
1,962,492
2,013,916
598,207
$
$
$
$
$
1,838,846
1,564,285
611,591
$
$
$
$
$
1,539,169
839,710
576,445
186,369
3,141,693
$
$
$
$
$
123,646
449,631
(13,384)
15,481

6.7%

28.7%
(2.2%)

14.6%

14.0%

50.0%

56.6%

47.2%

39.1%

51.8%

58.0%

63.6%

48.6%

34.8%

57.3%

TRANSIENT OCCUPANCY

FRANCHISE
390,500 11.0%
-
-
-
-REAL PROPERTY TRANSFER

SUBTOTAL
121,492 106,011
9,064,700 9,455,200 390,500 4.3% 4,696,107 4,120,733 575,374 001 LICENSES & PERMITS

BUSINESS LICENSES

PERMITS
$
$
$
1,615,500
1,266,675
2,882,175
$
$
$
1,735,500
1,266,675
3,002,175
$
$
$
120,000
-

7.4%
-
$
$
$
88,266
856,400
944,666
$
$
$
154,593
1,046,013
1,200,606
$
$
$
116,106
1,279,891
1,395,997
$
$
$
(66,327)
(189,613)
(255,940)
(42.9%)
(18.1%)
(21.3%)

5.5%

67.6%

32.8%

10.4%

55.6%

35.7%SUBTOTAL 120,000 4.2%
001 INTERGOVERNMENTAL
GRANTS, REIMBURSEMENTS, ARPA (POST, SB 90, GRANTS)
002 HOMEOWNERS PROPERTY TAX RELIEF
003 GRANTS
(2) $
$
$
$
42,000
98,000
-
$
$
$
$
42,000
98,000
-
$
$
$
$
-
-
-
-
-
-
-
-
$
$
$
$
1,861
45,086
-
$
$
$
$
4,116,873
46,453
$
$
$
$
4,063,605
48,040
-
$
$
$
$
(4,115,012)
(1,367)
(100.0%)
(2.9%)

4.4%

46.0%
-
100.8%

46.5%
-6,039 (6,039) (100.0%)
(98.9%)SUBTOTAL 140,000 140,000 46,947 4,169,365 4,111,645 (4,122,418) 33.5% 99.6%

CHARGES FOR CURRENT SERVICES
001 SERVICE FEES
003 RECREATION AND LEISURE

SUBTOTAL
001 FINES & FORFEITURES

INTEREST AND RENTALS

INTEREST
$
$
$
$
471,534
1,526,935
1,998,469
24,900
$
$
$
$
471,534
1,526,935
1,998,469
24,900
$
$
$
$
-
-
-
-
-
-
-
-
$
$
$
$
310,485
1,097,246
1,407,731
12,500
$
$
$
$
431,785
867,824
1,299,609
12,863
$
$
$
$
379,697
534,762
914,459
7,904
$
$
$
$
(121,300)
229,422
108,122
(363)
(28.1%)

26.4%

8.3%

65.8%

71.9%

70.4%

50.2%
130.9%

70.2%

83.0%

89.3%(2.8%)
(3) $
$
$
$
$
$
$
$
$
1,521,700
1,425,828
2,947,528
496,385
$
$
$
$
$
$
$
$
$
2,623,900
1,425,828
4,049,728
496,385
$
$
$
$
$
$
$
$
$
1,102,200
-

72.4%
-
$
$
$
$
$
$
$
$
$
1,144,668
689,401
$
$
$
$
$
$
$
$
$
415,732
638,016
$
$
$
$
$
$
$
$
$
72,179
608,484
$
$
$
$
$
$
$
$
$
728,936
51,385
175.3%

8.1%

75.2%

48.4%

62.2%

29.8%

53.9%

50.2%

54.9%

69.0%

53.9%

81.0%

71.2%

26.0%

43.9%

61.8%

72.8%

55.0%

73.9%

61.8%

RENTS & CONCESSIONS
SUBTOTAL 1,102,200
-

37.4%
-
1,834,069
147,953
1,053,748
156,453
680,663 780,321 74.1%
(5.4%)
(11.6%)
(36.9%)

5.6%
OTHER REVENUES 501,294 (8,500)
TOTAL GENERAL FUND (FUNDS 001-003)
001 Total Fund 001
002 Total Fund 002
57,946,287
18,591,974
37,299,250
2,055,063
57,946,287
60,828,532
19,108,969
39,664,500
2,055,063
60,828,532
2,882,245
516,995
2,365,250
-

5.0%

2.8%

6.3%
-
31,225,967
9,338,003
20,470,368
1,417,596
31,225,967
35,325,581
14,800,068
19,388,478
1,137,035
35,325,581
30,118,781
11,361,655
18,026,236
730,890
(4,099,614)
(5,462,065)
1,081,890
280,561003 Total Fund 003 24.7%
(11.6%)Total Funds 001-003 2,882,245 5.0% 30,118,781 (4,099,614) 005 GENERAL FUND - COMMUNITY BENEFITS PROGRAM
006 GENERAL FUND - DARE
007 GENERAL FUND - SOLAR INCENTIVE GRANT PROGRAM
008 GENERAL FUND - RENTAL ASSISTANCE
009 GENERAL FUND - ASSET SEIZURE
010 GENERAL FUND - PENSION STABILIZATION FUND
011 GENERAL FUND - FACILITIES REPLACEMENT
012 SUSTAINABLE FOSTER CITY
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
$
$
$
$
$
$
$
$
$
6,500
900
$
$
$
$
$
$
$
$
$
39,400
1,700
$
$
$
$
$
$
$
$
$
32,900
800
506.2%

88.9%

27.8%
125.0%

25.0%

21.2%

19.4%
556.3%

5.1%
$
$
$
$
$
$
$
$
$
26,435
956
$
$
$
$
$
$
$
$
$
12,251
22,873
708
$
$
$
$
$
$
$
$
$
62,652 $
$
$
$
$
$
$
$
$
14,184
(21,917)
692
115.8%
(95.8%)

97.7%
406.7%
106.2%

77.8%
177.3%

35.6%

65.6%

66.0%
366.3%

54.0%
816.7%
228730.0%
354.0%
300.0%
146.6%
229.0%
228.5%
431.9%

61.9%
4 1251,800 2,300 500 1,400
800 1,800 1,000
400
1,418 600 91 818 136.3%
(64.7%)
136.5%
136.5%

23.3%
1,600 2,000 570 1,613 34 (1,043)
1,2503,300 4,000 700 2,166 916 139
86,000
1,600
102,700
10,500
60,992,932
16,700
8,900
2,944,145
56,723
5,860
23,988
4,751
3,632
341
32,735
1,109
TOTAL ALL GENERAL FUND (FUNDS 001-011) 58,048,787 31,321,495 35,393,281 30,185,799 (4,071,786) (11.5%)

SPECIAL REVENUE FUNDS
101 TRAFFIC SAFETY
102 MEASURE "A"
103 GAS TAX
104 PARK-IN-LIEU FEES
105 MEASURE "M"
108 SLESF/COPS GRANT
114 CALOPPS
116 FOSTER CITY FOUNDATION
119 SB 1 ROAD MAINTENANCE AND REHAB
122 HOUSING SUCCESSOR-LMIHF
124 FC AFFORDABLE HOUSING FUND
125 SUSTAINABLE FOSTER CITY FUND (MOVED TO FUND 012)
127 BAERS (PROGRAM WAS CLOSED OUT IN FY 2020-21)
128 GENERAL PLAN MAINTENANCE
129 CONSTRUCTION AND DEMO RECYCLING
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
60,000
874,000
980,697
74,800
121,700
155,000
514,077
38,900
856,598
133,700
8,900
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
60,000
1,050,200
936,607
120,100
121,700
155,000
532,077
38,900
841,962
185,500
37,000
-
$ -
176,200
(44,090)
45,300
-
-

20.2%
(4.5%)

60.6%
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
14,795
577,671
494,803
66,534
100,000
125,762
441,361
14,940
424,493
97,300
26,017
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
12,628
521,929
467,766
28,137
119,300
104,058
405,867
8,600
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
25,027
464,672
416,337
4,261
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2,167
55,742
27,037
38,397
(19,300)
21,704
35,494
6,340

17.2%

10.7%

5.8%

24.7%

66.1%

50.5%

88.9%

82.2%

81.1%

85.9%

38.4%

49.6%

72.8%
292.3%
-

21.0%

68.5%

56.5%
226.9%
108.9%
104.1%

98.1%

22.8%

58.5%

50.7%

17.0%
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
(3)
(3)
136.5%
(16.2%)

20.9%

8.7%
1,908
- - 95,929
358,714
24,255
330,969
181,274
27,466
-
18,000
-

3.5%
- 73.7%

13.0%

93.4%
426.3%
-
(3)
(3)
(3)
(14,636)
51,800
28,100
-
(1.7%)

38.7%
315.7%
-
375,683
50,306
4,943
48,810
46,994
21,074
-- -
- - - - - - - - - - -
(3)
(3)
34,700
66,000
84,300
79,600
49,600
13,600
142.9%

20.6%
253,710
41,054
147,554
16,110
134,280
19,574
106,156
24,944

71.9%
154.8%
731.2%

62.2%

47.6%

29.7%

Page 1 of 2 ends

5.1 Attachment 3 - Comparison of Budget vs. Actual and Prior Year's Revenues

10 Attachment 3

CITY OF FOSTER CITY/ESTERO MUNICIPAL IMPROVEMENT DISTRICT COMPARISON OF BUDGET VS. PROJECTED ACTUAL REVENUES

BUDGET VS ACTUAL & CURRENT VS PRIOR
FOR THE SIX MONTHS ENDED DECEMBER 31, 2023
FY 2023-24 ACTUAL
FY 2023-24
6 MONTHS
AS OF 12/31/2023
41,554
1,754

ACTUAL ACTUAL YR OVER YR

FAVORABLE
% OF BUDGET
FY 2023-24
6 MONTHS
AS OF 12/31/2023
110.7%

33.7%
% OF BUDGET

ABOVE (BELOW)

ANNUAL BUDGET
FY 2022-23 FY 2021-22 % FY 2022-23

AMENDED
BUDGET
37,540
6 MONTHS 6 MONTHS (UNFAVORABLE) INCREASE 6 MONTHS
Fund
130 TECHNOLOGY MAINTENANCE
131 SB 1186
132 SMIP FEE
133 CRV GRANT FUND
134 CURBSIDE RECLYCLING
135 GREEN BUILDING FEE
136 MEASURE W
137 COMMERCIAL LINKAGE FEE
138 TENANT RELOCATION ASSISTANCE
139 WORKFORCE HOUSING
140 EQUIPMENT REPLACEMENT-WORKFORCE HOUSING
141 SB1383 IMPLEMENTATION
142 PARK FACILITIES IMPACT FEE
143 PUBLIC SAFETY IMPACT FEE
144 TRANSPORTATION IMPACT FEE

TOTAL SPECIAL REVENUE FUNDS
PROJECTED $ % AS OF 12/31/2022 AS OF 12/31/2021 VARIANCE 881
(DECREASE)

2.2%
AS OF 12/31/2022
(3)
(3)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$ 41,740
5,700
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
4,200
500

11.2% $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
40,673
970
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
72,689 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

20.0%

23.4%

4.8%

1.0%

10.6%

24.0%

59.3%

0.7%

4.4%

13.0%

50.3%
-
5,200
620
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

9.6%
-
634 784
85 80.8%
157.4%
249.4%
166.9%

96.6%

8.2%
620 - 139 54 209 22.4%
(3)
(3)
(3)
(3)
8,740
22,600
900
9,040 300 3.4%

12.4%

11.1%

23.3%
34393.2%
390.0%

1.9%

3.6%
550.0%
-
311 89 18 222 3.6%
25,400
1,000
2,800
100
5,804 2,175
175
14,800 3,629
169

25.7%
344 162 38.2%
389,200
14,800
2,000
625,640
27,900
200
479,700
5,104,990
9,800
90,500 227,534
13,490
5,366
210,385
5,705
2,269
87,734
11,071
451
177,319 17,149
7,785
3,097
203,085
590

58.5%
5,090,190
7,800
864 136.5%
136.5%
231.5%

5.3%

91.1%
(3)
(3)
(3)
(3)
19,677 268.3%

46.5%637,440
28,900
1,300
11,800
1,000
290,819
11,661
715
-
- 41.8%
1,100 - 264 58.5%
-
357.5%
-- 594,113
64,320
121,869
11,368,878
594,113
64,320
121,869
6,314,466
- - - - -
- - - - -
-
- - - -
- - - - - - - -
5,054,412 124.9% 3,277,931 2,624,632 2,371,038 653,299 24.9% 64.9% 46.7% 230 LEVEE DEBT SERVICE FUND - 2020 GO BONDS
231 LEVEE DEBT SERVICE FUND - 2023 GO BONDS
$
$
4,011,500
230,451
$
$
4,011,500
230,451
$
$
-
-
-
-
$
$
2,232,451
228,527
$
$
2,110,072
-
$
$
5,114
-
$
$
122,379
228,527

5.8%
-

55.7%

99.2%

53.7%
-

CAPITAL PROJECTS FUNDS
301
326
327
328

CIP PROJECTS-CITY

CAPITAL ASSET ACQUISITION AND REPLACEMENT FUND

LEVEE PROJECT FUND
(3)
(3)
$
$
$
$
$
2,270,050
1,240,555
38,400
$
$
$
$
$
3,523,950
1,268,655
38,400
$
$
$
$
$
1,253,900 55.2% $
$
$
$
$
2,062,525
630,296
$
$
$
$
$
1,540,822
585,122
192,622
-
$
$
$
$
$
63,728
622,118
57,648
-
$
$
$
$
$
521,703
45,174

33.9%

7.7%

90.9%

50.8%

99.0%

99.9%

90.4%
1018.7%

52.4%
963.1%
-
28,100 2.3%
-
-
-
-
38,034 (154,588)
5,011,747
5,424,036
(80.3%)
-LEVEE PROJECT FUND - 2023 GO Bonds

TOTAL CAPITAL PROJECTS FUNDS
5,015,737
8,564,742
5,015,737
9,846,742
5,011,747
7,742,6021,282,000 15.0% 2,318,566 743,494 233.9% 180.1%

ENTERPRISE FUNDS
401 WATER REVENUE
405 WATER CIP
(3,4)
(3,4)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
18,301,000 $
$
$
$
$
$
$
$
$
$
$
$
$
$
18,991,500 $
$
$
$
$
$
$
$
$
$
$
$
$
$
690,500 3.8% $
$
$
$
$
$
$
$
$
$
$
$
$
$
9,912,550 $
$
$
$
$
$
$
$
$
$
$
$
$
$
8,642,386 $
$
$
$
$
$
$
$
$
$
$
$
$
$
8,247,979
300
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1,270,164 14.7%
-

54.2% 47.8%
- -
448,097
285,559
22,652,700
-
- - - -
255,218
57,865
10,397,470
-
- - -
408 WATER EQUIPMENT REPLACEMENT
409 WATER CONNECTION FEES
451 WASTEWATER REVENUE
453 WASTEWATER RATE STABILIZATION
454 SM-FC PUBLIC FINANCING AUTHORITY LOAN
455 WASTEWATER CIP
456 WASTEWATER PLANT EXPANSION
458 WASTEWATER EQUIPMENT REPLACEMENT
459 WASTEWATER NOTES/WIFIA LOAN/SRF LOAN
460 WASTEWATER CONNECTION FEES
461 STATE REVOLVING LOAN FUND

TOTAL ENTERPRISE FUNDS
448,097 - - 224,049 316,766
224,033
8,617,926
-
(31,169) (12.2%)
(52.2%)

11.9%
-

50.0% 50.0%
285,559 - - 27,661 (30,204) 9.7% 11.6%
21,540,300 1,112,400 5.2% 11,632,488 1,235,018 54.0% 52.0% - - - - - - -
- - - - -
-
- 59 -
-
- - -
- - -
2,161
-
- - - - -
439.8%

50.0%
-
-
426.9%

50.0%
-
636 2,797 339.8% 2,797 2,715
133,063
124,506
11,441
-
5,367
127,341
21,547
92,757
-
82 3.0%

28.9%
(54.0%)
(30.4%)
-
342,955 342,955
63,600
729,460
-
-
-
171,477
57,320
7,965
38,414
(67,186)
(3,476)
-
(3)
(3)
-
722,260
-
63,600
7,200
-

1.0%
-

1.1%
-

1.0%
--
41,640,807 43,516,668 1,875,861 4.5% 22,036,307 19,624,664 17,654,075 2,411,643 12.3% 52.9% 48.4%

INTERNAL SERVICE FUNDS
501 VEHICLE RENTAL FUND
502 EQUIPMENT REPLACEMENT FUND
503 SELF INSURANCE FUND
504 INFORMATION TECHNOLOGY
505 BUILDING MAINTENANCE
507 LONGEVITY RECOGNITION PLAN
508 PEMHCA FUND
509 COMPENSATED ABSENCES FUND

TOTAL INTERNAL SERVICE FUNDS
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
$
$
$
$
$
$
$
$
$
2,059,573
292,163
$
$
$
$
$
$
$
$
$
2,230,973
362,663
$
$
$
$
$
$
$
$
$
171,400
70,500
-

8.3%

24.1%
-
$
$
$
$
$
$
$
$
$
1,139,638
212,361
$
$
$
$
$
$
$
$
$
944,246
305,160
$
$
$
$
$
$
$
$
$
888,592
362,559
$
$
$
$
$
$
$
$
$
195,392
(92,799)
167,987
120,501
181,692
44,425

20.7%
(30.4%)

28.0%

9.2%

55.3%

72.7%

49.8%

52.0%

53.0%

57.8%

62.7%

55.9%

53.9%

53.3%

64.7%

48.6%

51.6%

52.6%

55.1%

60.9%

52.9%

52.8%
1,543,261
2,749,884
3,752,145
319,200
1,543,261
2,872,084
3,926,645
379,200
768,899 600,912 291,343
122,200
174,500
60,000
138,800
34,400
771,800

4.4%

4.7%

18.8%

30.6%

5.4%

6.5%
1,431,253
1,989,783
184,622
1,310,752
1,808,091
140,197
1,205,239
1,703,524
118,458

10.0%

31.7%

66.1%

12.4%

13.7%
453,063 591,863 284,177 171,127 111,823 113,050
38,911632,242 666,642 353,464 314,553 252,006
11,801,531 12,573,331 6,364,197 5,595,038 4,933,544 769,159

FIDUCIARY FUNDS
604 SUCESSOR ANGENCY
607 TOURISM ASSESSMENT
608 SMC FIRE
(3) $
$
$
$
289,500
-
$
$
$
$
293,200
-
$
$
$
$
3,700 1.3% $
$
$
$
172,834
-
$
$
$
$
283,448
-
$
$
$
$
275,342
31,430
$
$
$
$
(110,614)
-
(39.0%)
-

59.7%
-
100.7%
--
-
-
-320,000
129,961,730
320,000
143,153,702
63,001
73,439,345
77,597
68,027,298
74,081 (14,596)
5,412,047
(18.8%)

8.0%

19.7%

56.5%

35.1%

56.9%TOTAL CITY / EMID FUNDS 13,191,972 10.2% 56,273,917 Notes and Explanation of Variances:

The majority of property tax revenues are distributed by San Mateo County in December and April of each fiscal year. Notwithstanding, the City received $667,557 in August 2023 from the State to backfill the FY 21/22 Property Tax in Lieu of VLF shortfall. Similarly, we received $2.01 million in August 2022 from the State to backfill the FY 20/21 Property Tax in lieu of VLF shortfall.1 2 3
4 The City received two tranches of one-time ARPA COVID relief payments of $4.05 million each from the federal government in FY 2021-22 and FY 2022-23.

As of 12/31/23, the City's investment portfolio yield was 4.54% and better than the 3.5% budgeted for the year. As a result, projected investment income for the full year has been adjusted upward.

FY 2023-24 water consumption rates and fixed charges increased by 4.3% and 6% respectively; wastewater rates increased by 3%.

Page 2 of 2 ends

5.1 Attachment 3 - Comparison of Budget vs. Actual and Prior Year's Revenues

11 Attachment 4
COMPARISON OF BUDGET VS. PROJECTED ACTUAL EXPENDITURES

BUDGET VS ACTUAL & CURRENT VS PRIOR
FOR THE SIX MONTHS ENDED DECEMBER 31, 2023
FY 2023-24 ACTUAL
FY 2023-24
6 MONTHS

ACTUAL ACTUAL
FY 2021-22
6 MONTHS

INCREASE /

DECREASE /
FROM
% OF BUDGET
FY 2023-24
% OF BUDGET
FY 2022-23SAVINGS (EXCESS) FROM

AMENDED BUDGET
FY 2022-23
6 MONTHS
%

AMENDED
BUDGET

INCREASE
(DECREASE)
6 MONTHS 6 MONTHS
Fund PROJECTED $ % AS OF 12/31/2023 AS OF 12/31/2022 AS OF 12/31/2021 PRIOR YEAR AS OF 12/31/2023 AS OF 12/31/2022 GENERAL FUND (FUNDS 001-003)
DEPARTMENTS:

COUNCIL/BOARD

CITY MANAGER
$
$
$
$
$
$
$
$
$
$
$
$
$
450,910 $
$
$
$
$
$
$
$
$
$
$
$
$
450,910
1,564,025
1,257,736
656,365
$
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-

0.0%

0.0%
$
$
$
$
$
$
$
$
$
$
$
$
$
316,781
710,774
$
$
$
$
$
$
$
$
$
$
$
$
$
356,648
1,245,086
514,803
$
$
$
$
$
$
$
$
$
$
$
$
$
228,999
869,085
$
$
$
$
$
$
$
$
$
$
$
$
$
(39,867) (11.2%)
(42.9%)
(7.0%)
(54.7%)
104.3%

30.5%
(24.7%)
(9.8%)

4.1%

70.3%

45.4%

38.1%

16.8%

30.6%

45.7%

43.3%

47.1%

68.3%

42.5%

35.3%

50.0%

48.5%

68.9%

61.2%

51.3%

40.0%

43.4%

48.8%

55.6%

56.3%

67.1%

46.8%

36.3%

50.0%

55.9%
(2)
(2)
1,564,025
1,257,736
656,365
(534,312)
(35,888)
(133,103)
303,189

COMMUNICATIONS/CITY CLERK

CITY ATTORNEY
478,915 409,611
110,069 243,172 218,804

HUMAN RESOURCES

FINANCIAL SERVICES

PARKS & RECREATION
POLICE
1,942,043
1,842,002
8,123,729
18,006,083
11,686,922
4,871,051
4,779,845
538,360
1,942,043
1,842,002
8,123,729
18,006,083
11,686,922
4,871,051
4,779,845
538,360
593,795 290,606 415,001
841,949 644,947 599,497 197,002
3,514,234
8,479,535
7,977,043
2,069,541
1,688,311
269,180
4,668,718
9,397,732
7,663,478
1,797,761
1,459,982
251,872
4,351,898
8,718,273
8,544,856
1,739,333
1,264,222
273,809
(1,154,484)
(918,197)
313,565FIRE

COMMUNITY DEVELOPMENT

PUBLIC WORKS
271,780 15.1%

15.6%

6.9%
228,329
LIBRARY 17,308
001 SUBTOTAL (1) 55,719,071 55,719,071 27,050,127 28,534,805 27,633,388 (1,484,678) (5.2%) 002
003

PROPERTY TAX ADMINISTRATION

SPECIAL RECREATION
$
$
369,609 $
$
369,609 $
$
-
-

0.0%

0.0%
$
$
164,459 $
$
152,731
996,398
$
$
152,731
741,600
$
$
11,728 7.7% 44.5%

46.3%

45.1%

46.5%3,257,272 3,257,272 1,507,343 510,945 51.3%
TOTAL GENERAL FUND (FUNDS 001-003) $ 59,345,952 $ 59,345,952 $ - 0.0% $ 28,721,929 $ 29,683,934 $ 28,527,719 $ (962,005) (3.2%) 48.4% 55.5% 005 GENERAL FUND - COMMUNITY BENEFITS PROGRAM
006 GENERAL FUND - DARE
$
$
$
$
$
$
$
$
$
349,667 $
$
$
$
$
$
$
$
$
349,667 $
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-

0.0%

0.0%
-
$
$
$
$
$
$
$
$
$
54,168 $
$
$
$
$
$
$
$
$
49,591 $
$
$
$
$
$
$
$
$
184,844 $
$
$
$
$
$
$
$
$
4,577 9.2% 15.5% 9.5%
38,366 38,366 - - - - - - -
007 GENERAL FUND - SOLAR INCENTIVE GRANT PROGRAM
008 GENERAL FUND - RENTAL ASSISTANCE
009 GENERAL FUND - ASSET SEIZURE
25,000 25,000 13,000 7,000 8,000 6,000 85.7% 52.0% 28.0% - - - - - - - - -
4,097 4,097 0.0%
-
- - - - - - -
010 GENERAL FUND - PENSION STABILIZATION FUND
011 GENERAL FUND - FACILITIES REPLACEMENT
012 SUSTAINABLE FOSTER CITY
-
-
-
-
-
-
-
-
-
-
-
-
- - -
- - - -
120,945
59,884,027
120,945
59,884,027

0.0%

0.0%
4,122 3,500 87,536
28,808,099
622 17.8%
(3.2%)

3.4%

48.1%

2.6%

54.8%TOTAL ALL GENERAL FUND (FUNDS 001-011) 28,793,219 29,744,025 (950,806)

SPECIAL REVENUE FUNDS
101
102
103
104
105
108
114
116
119
122
124
125
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
TRAFFIC SAFETY $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
60,000
4,253,588
935,549
745,435
100,000
100,000
783,050
136,250
455,057
146,620
235,000
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
60,000
4,253,588
935,549
745,435
100,000
100,000
783,050
136,250
455,057
146,620
235,000
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

0.0%

0.0%
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
30,000 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
30,000 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
30,000 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
- 0.0% 50.0% 50.0%
MEASURE "A" 648,666 381,257 - 267,409 70.1% 15.2% 25.4% GAS TAX 612,775 834,527 277,250 (221,752) (26.6%) 65.5% 147.6%

PARK-IN-LIEU FUND - - - - - - -
MEASURE "M" 100,000 119,300 - (19,300) (16.2%) 100.0% - SLESF/COPS GRANT 125,762 104,058 95,929 21,704 20.9% 125.8% 104.1% CALOPPS 147,964 217,144 232,893 (69,180) (31.9%) 18.9% 38.5%

FOSTER CITY FOUNDATION
SB 1 ROAD MAINTENANCE AND REHAB

HOUSING SUCCESSOR-LMIHF

FC AFFORDABLE HOUSING FUND
SUSTAINABLE FOSTER CITY (MOVED TO FUND 012)
BAERS (PROGRAM CLOSED OUT IN FY 20/21)

GENERAL PLAN MAINTENANCE

CONSTRUCTION AND DEMO RECYCLING

TECHNOLOGY MAINTENANCE
SB 1186
40,149 12,113 17,888 28,036 231.5% 29.5% 36.3%
- 1,285,709 62,362 (1,285,709) (100.0%) - -
44,272 34,988 36,408 9,284 26.5% 30.2% 25.7%
43,717 66,429 159,538 (22,712) (34.2%) 18.6% 6.4%
- - - - - - -
- - - - - - - - - -
167,400
309,750
105,485
1,300
167,400
309,750
105,485
1,300
500

0.0%

0.0%
-
53,683 161,969 105,778 (108,286) (66.9%) 32.1% 19.2%
18,238 29,944 31,170 (11,706) (39.1%) 5.9% 9.9%
27,460 60,371 40,274 (32,911) (54.5%) 26.0% 57.2%
- - - - - - -
SMIP FEE 500 - - - - - - -
CRV GRANT FUND 21,919
25,000
500
21,919
25,000
500
560 82 1,699 478 582.9% 2.6% 0.6%

CURBSIDE RECLYCLING

GREEN BUILDING FEE
- - -
-
-
-
-
-
-
-
-
-
-
- - - -
- - - - - -
MEASURE W 815,215
10,000
51,640
386,187
-
815,215
10,000
51,640
386,187
-
240,215 - 240,215 - 29.5% -

COMMERCIAL LINKAGE GEE

TENANT RELOCATION ASSISTANCE

WORKFORCE HOUSING

EQUIPMENT REPLACEMENT-WORKFORCE HOUSING
SB 1383 IMPLEMENTATION

PARK FACILITIES IMPACT FEE

PUBLIC SAFETY IMPACT FEE

TRANSPORTATION IMPACT FEE
- - - - - -
- - - - - -
98,738 47,827 50,911 106.4% 25.6% 14.5%
- - - - - -
29,915
-
29,915
-

0.0%
-
5,261 3,538 1,723 48.7% 17.6% 7.5%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- - -
- - -
TOTAL SPECIAL REVENUE FUNDS $ 9,875,360 $ 9,875,360 $ - 0.0% $ 2,237,460 $ 3,389,256 $ 1,091,189 $ (1,151,796) (34.0%) 22.7% 54.7%

Page 1 of 2 ends

5.1 Attachment 4 - Comparison of Budget vs. Actual and Prior Year's Expenditures

12 Attachment 4
COMPARISON OF BUDGET VS. PROJECTED ACTUAL EXPENDITURES

BUDGET VS ACTUAL & CURRENT VS PRIOR
FOR THE SIX MONTHS ENDED DECEMBER 31, 2023
FY 2023-24 ACTUAL
FY 2023-24
6 MONTHS

ACTUAL ACTUAL
FY 2021-22
6 MONTHS

INCREASE /

DECREASE /
FROM
% OF BUDGET
FY 2023-24
% OF BUDGET
FY 2022-23SAVINGS (EXCESS) FROM

AMENDED BUDGET
FY 2022-23
6 MONTHS
%

AMENDED
BUDGET

INCREASE
(DECREASE)
6 MONTHS 6 MONTHS
Fund PROJECTED $ % AS OF 12/31/2023 AS OF 12/31/2022 AS OF 12/31/2021 PRIOR YEAR AS OF 12/31/2023 AS OF 12/31/2022 230 LEVEE DEBT SERVICE FUND - 2020 GO BONDS
LEVEE DEBT SERVICE FUND - 2023 GO BONDS
$
$
5,349,188 $
$
5,349,188
109,513
$
$
-
-

0.0%

0.0%
$
$
4,229,256
-
$
$
5,198,056
-
$
$
5,230,656
-
$
$
(968,800)
-
(18.6%)
-

79.1%
-

81.5%
-231 109,513

CAPITAL PROJECTS FUNDS
301 CIP PROJECTS-CITY $ 4,395,000 $ 4,395,000 $ - 0.0% $ 3,382,061 $ 648,092 $ 29,944 $ 2,733,969 421.8% 77.0% 14.2%

CAPITAL ASSET ACQUISITION AND REPLACEMENT
FUND326
327
(3) $
$
- $
$
- $
$
-
-
- $
$
- $
$
7,015,009
9,810,660
$
$
- $
$
(7,015,009)
(4,440,248)
(100.0%)
(45.3%)
- 99.5%
-LEVEE PROJECT FUND 9,438,912 9,438,912 0.0% 5,370,412 15,562,473 56.9% TOTAL CAPITAL PROJECTS FUNDS $ 13,833,912 $ 13,833,912 $ - 0.0% $ 8,752,473 $ 17,473,761 $ 15,592,417 $ (8,721,288) (49.9%) 63.3% 150.5%

ENTERPRISE FUNDS
401
405
408
409
451
453
454
455
456
458
459
WATER REVENUE $
$
$
$
$
$
$
$
$
$
$
17,922,284 $
$
$
$
$
$
$
$
$
$
$
16,219,700 $
$
$
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-
-
-
-

0.0%
-
$
$
$
$
$
7,541,891
159,894
15,468
-
$
$
$
$
$
$
$
$
$
$
$
6,933,928
81,224
193,484
-
$
$
$
$
$
$
$
$
$
$
$
6,352,649 $
$
$
$
$
$
$
$
$
$
$
607,963
78,670
(178,016)
-

8.8%

96.9%
(92.0%)
-

42.1%
-

40.3%

2.5%
100.3%
-

CIP-WATER -
249,000
-
-
249,000
-
515,396

WATER EQUIPMENT REPLACEMENT

WATER CONNECTION FEES

WASTEWATER REVENUE

0.0%
-
16,306 6.2%
--
9,981,803
-
9,981,803
-

0.0%
-
3,399,034 3,273,404
-
3,007,700 125,630
-

3.8%
-

34.1%
-

37.6%
-WASTEWATER RATE STABILIZATION

SM-FC PUBLIC FINANCING AUTHORITY LOAN

CIP-WASTEWATER
-
1,322,875
3,975,165
-
1,863,716
11,729,789
-
1,863,716
11,729,789
-

0.0%

0.0%
-
$
$
$
$
$
1,350,000
8,489,891
-
1,334,250
13,208,409
-
15,750
(4,718,518)
-

1.2%
(35.7%)
-

72.4%

72.4%
-

71.6%
340.4%
-WASTEWATER PLANT EXPANSION

WASTEWATER EQUIPMENT REPLACEMENT

WASTEWATER NOTES/WIFIA LOAN/SRF LOAN
423,501
3,144,950
423,501
3,144,950

0.0%

0.0%
184,764
1,570,780
46,774
1,570,920
- 137,990
(140)
295.0%
(0.0%)

43.6%

49.9%

15.1%

15.4%216,656
460
461

WASTEWATER CONNECTION FEES

STATE REVOLVING LOAN FUND
$
$
-
-
$
$
-
-
$
$
-
-
-
-
$
$
-
-
$
$
-
-
$
$
-
-
$
$
-
-
-
-
-
-
-
-
TOTAL ENTERPRISE FUNDS $ 45,315,043 $ 43,612,459 $ - - $ 22,711,722 $ 26,642,393 $ 15,406,747 $ (3,930,671) (14.8%) 50.1% 35.3%

INTERNAL SERVICE FUNDS
VEHICLE RENTAL FUND501
502
503
504
505
507
508
509
$
$
$
$
$
$
$
$
2,134,551
529,500
$
$
$
$
$
$
$
$
2,134,551
529,500
$
$
$
$
$
$
$
$
-
-
-
-
-
-
-
-

0.0%

0.0%
$
$
$
$
$
$
$
$
608,903
630
$
$
$
$
$
$
$
$
808,981
75,693
$
$
$
$
$
$
$
$
862,347
13,765
$
$
$
$
$
$
$
$
(200,078)
(75,063)
293,299
(60,109)
47,374
(24.7%)
(99.2%)

26.7%
(5.5%)

4.1%

28.5%

0.1%

40.6%

20.3%

81.7%

45.3%

25.6%

39.1%

40.9%

54.5%

EQUIPMENT REPLACEMENT FUND
SELF INSURANCE FUND (4) 1,532,807
2,892,584
2,974,968
238,420
1,532,807
2,892,584
2,974,968
238,420
1,390,765
1,027,344
1,207,702
102,620
101,379
92,583
1,097,466
1,087,453
1,160,328
93,098
796,053
910,834
1,108,616
99,220

90.7%

35.5%

40.6%

43.0%

41.2%

18.5%

INFORMATION TECHNOLOGY

BUILDING MAINTENANCE

LONGEVITY RECOGNITION PLAN

PEMHCA FUND
9,522 10.2%

8.0%245,843 245,843 93,853 89,713 7,526
COMPENSATED ABSENCES FUND 500,719 500,719 305,491 167,248 (212,908) (69.7%) TOTAL INTERNAL SERVICE FUNDS $ 11,049,392 $ 11,049,392 $ - 0.0% $ 4,531,926 $ 4,722,363 $ 4,047,796 $ (190,437) (4.0%) 41.0% 40.5%

FIDUCIARY FUND
604 SUCESSOR ANGENCY
607 TOURISM ASSESSMENT
608 SMC FIRE FEES
$
$
$
508,051
-
320,000
$
$
$
508,051
-
320,000
$
$
$
-
-
-

0.0%
-

0.0%
$
$
$
8,876
-
43,556
$
$
$
10,610
-
26,204
$
$
$
11,091
26,058
67,398
$
$
$
(1,734)
-
17,352
(16.3%)
-

66.2%

1.7%
-

13.6%

3.2%
-

11.9%
TOTAL CITY / EMID FUNDS $ 146,244,486 $ 144,541,902 $ - 0.0% $ 71,308,488 $ 87,206,668 $ 70,281,451 $ (15,898,180) (18.2%) 48.8% 52.5% Notes and Explanation of Variances:
1 FY 23/24 expenditures for various departments were comparatively lower than the prior two years as the City elected not to prepay the entire year's unfunded liability obligations to CalPERS in July, but rather make monthly payments due to its high investment portfolio yields. These July payments totaled $7.51M and $6.79M for FY 22/23 and FY 21/22 respectively.

Expenditures for the City Managers office are lower as the self insurance program was transferred to the Administrative Services Dept in FY 23/24 and the Principal Management Analyst position has been left unfilled. FY 21/22 expenditures were comparatively higher and included severance pay to its former City Manager.2
3 4
The City acquired 22 units of workforce housing in August 2022 The City makes its annual insurance premium payments in the 1st quarter of each fiscal year.

Page 2 of 2 ends

5.1 Attachment 4 - Comparison of Budget vs. Actual and Prior Year's Expenditures

13 5
5 6
DATE: February 26, 2024

TO: Mayor and Members of the City Council President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
VIA: Stefan Chatwin, City/District Manager

FROM: Stefan Chatwin, City/District Manager
Marlene Subhashini, Assistant City Manager
Edmund Suen, Finance Director
DEPARTMENT: City Manager
SUBJECT: POLICY DIRECTION REGARDING PREPARATION OF THE FY 2024-25 ANNUAL BUDGET AND FIVE-YEAR FINANCIAL PLAN

RECOMMENDATION
It is recommended that the City Council/EMID Board (City and EMID are hereinafter referred to as “City”) by Minute Order, provide policy direction relative to the development of the FY 2024-25 Annual Budget and Five- Year Financial Plan.

EXECUTIVE SUMMARY
The health of the City’s General Fund and other funds (including Special Revenue Funds, Capital Improvement Funds, Water and Wastewater Enterprise Funds, and Internal Service Funds) are critical in ensuring reliable service delivery funded through these various resources. As indicated in the Mid-Year Financial Report discussed earlier this evening, an improved revenue outlook for the full fiscal year is expected to reduce the City’s projected General Fund from $6.32 million to $4.54 million. As of June 30, 2023, General Fund Reserves totaled $58.6 million, which is 100% of this year’s adopted expenditures budget, excluding transfers out.

As part of the budget development process, the City Council has had a long-held principle in remaining committed to providing excellent service to the community while maintaining its ability to address unforeseen operating or capital needs, unfunded pension liabilities,

5.2 5.2 Staff Report

14 5
5 6
unexpected fiscal hardships (such as local disasters), and economic downturns. Although abated, full recovery from the COVID-19 pandemic has yet to materialize in the City’s hotel Transient Occupancy Tax (TOT). The expiration of annual American Rescue Plan Act (ARPA) relief assistance of $4.05 million over each of the past two years requires the City to identify organic solutions to address its projected multi-year General Fund structural deficits. With this in mind, City staff seek policy direction in several areas as outlined in the Analysis section. Once policy direction is received, City staff will proceed with preparing the FY 2024-25 budget in accordance with the budget schedule shown at the end of the report.

BACKGROUND
The City Council’s policy general direction over the past years can be summarized in two key points:

1. Achieve a General Fund balanced budget (revenues meeting or exceeding expenditures net of transfers) without the use of reserves.

2. Maintain reserves above the City Council’s General Fund reserve policy of 33- 1/3% to 50% (4 to 6 months) of annual operating expenditures; this has been informally established in recent years as 100% reserves.

City staff will prepare an updated Five-Year Financial Plan as part of the FY 2024-25 Preliminary Budget. Based on the current economic conditions and the City’s current priorities, including the rebuild of the Recreation Center, anticipated increase in personnel costs from current labor agreements, the increase in pension costs and liability as a result of CalPERS underperformance over the past 2 fiscal years, personnel and service and supplies exception requests under consideration by the City Manager, consideration of a potential Business License Tax ballot measure in the November 2024 general election, and uncertainty regarding the State’s appetite to provide a permanent fix to Property Tax in Lieu of Vehicle License Fee revenues, the City Council may want to consider policy options to achieve a balanced budget for FY 2024-25 and also minimize/cure the anticipated multi-year structural deficits.

ANALYSIS
This staff report will identify various alternatives and policy options that the City Council may consider for reducing the General Fund deficits or achieving a balanced budget for FY 2024-25 and in the five-year financial forecast. The direction that the City Council provides will determine the level of services provided to this community in the context of maintaining the sustainable financial and economic vibrancy of the City and the community.

5.2 5.2 Staff Report

15 5
5 6
Policy Considerations
There are six primary policy considerations that the City Council will want to consider in this budget cycle. While this may not be an exhaustive list, it represents key policy considerations that City staff believes are important in establishing sound fiscal policy for the future of the City’s operations.

1. Service Level Expectations

2. Revenue Models

3. Employee Compensation Policies

4. Long-Term Capital Improvement Project Funding

5. Funding Internal Service Funds

6. Reserve Policy
These various policy considerations are discussed below as a means of starting the conversation subject to City Council and City staff dialogue at the Budget Study Session.

1. Service Level Expectations
Defining the types and levels of services expected each year includes a process of public engagement, understanding current services, identifying the City’s mission, long-term vision, and goals of the community. Based on the goals established by the City Council, the City Manager identifies the resources required to deliver services, how best to organize those resources to achieve the City Council’s vision for the community and presents those recommendations in the Preliminary Budget for City Council review, consideration, and direction. In a service-oriented organization such as a city, it takes staff to provide services. In fact, Foster City’s budgeted personnel costs for FY 2023-24 represent approximately 63.2% of the General Fund annual operating budget (Fire personnel costs are excluded from the calculation as they are personnel of the San Mateo Consolidated Fire Department JPA and counted as contract services in the City’s budget).

As important as it is for a city to invest in its physical capital, it is just as important for a city to ensure it is investing appropriately in its human capital and to determine what is the proper level of staffing and the necessary skill sets required to deliver on the city’s mission.

In the current fiscal year, services are being provided by an authorized 177 full-time City employees (verses 172 employees in the prior year) as well as various part-time and seasonal staff. Over the course of the past and current fiscal year, the City Manager recommended various organizational changes to improve its operations and service delivery. These changes were approved by the City Council with the understanding that there would be an ongoing fiscal impact on the General Fund.

For the FY 2024-25 Budget, the City will continue to evaluate the current level of staffing to meet the City Council’s strategic directives. A detailed line-item budget will be submitted for City Council review at the Budget Study Session on May 13, 2024 and will

5.2 5.2 Staff Report

16 5
5 6
ultimately be approved concurrently with the adoption of the City budget scheduled for June 17, 2024.

2. Revenue Models
Approximately 85.1% of the City’s General Fund budgeted revenues come from taxes that are set in accordance with state or municipal law that, under the provisions of Proposition 218, require voter approval to be modified. Tax measures, such as the hotel TOT measure in November 2018, and the Business License Tax (BLT) measure in November 2013, were taken to the voters and approved. The City does not currently have a local add-on sales tax. As indicated earlier in this staff report, the City is considering a potential Business License Tax ballot measure for the November 2024 general election. Over the last 20+ years, concepts such as business improvement districts, assessment districts, and other models have not been deemed necessary.

The other 14.9% of General Fund revenues are based upon City Council action, typically in the form of a resolution, and usually after a public hearing.

A brief discussion of the some of the types of City taxes and fees are as follows:
Transient Occupancy Tax (TOT) - A TOT measure was last taken to the voters in November 2018 and was approved. It raised the TOT rate from

9.5% to 12.0% bringing it in line with many jurisdictions in San Mateo County at that time. There are currently eleven agencies whose TOT rate is at or below 12%. Seven agencies have a 14% rate.
Sales Tax – In general, Foster City receives 1% of the 9.375% sales tax assessed in the City. However, cities may seek local voter approval for a local add-on rate. If approved, taxes collected from the add-on rate provide additional revenues to such cities. There are 10 cities in San Mateo County that are at the 9.375% base rate. Two cities have a 1/8% add-on rate, and 8 cities have a 1/2% add-on rate.
Business License Tax (BLT) – In 2022, the City Council considered a potential November 2022 BLT ballot measure, but ultimately decided to postpone that option. Last year, direction was given to the City Manager to analyze the current BLT methodology. Over the course of the next several months, staff and its consultants will present options to the City Council for direction on a potential BLT ballot measure for the November 2024 general election.
Franchise Fees– Fees charged to utility or service providers for the privilege of providing services in the community using the City’s rights of way are known as Franchise Fees. These fees are typically within the purview of the City Council to change, but in some cases are dictated by

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federal or state law. Examples of these fees that the City currently collects are as follows:
oCable / Video Franchise – Comcast and AT&T UVerse pays the City the federally-allowed maximum franchise fee of 5% of gross revenues.
oGas and Electric Franchise – The existing franchise agreement with PG&E dates back to 1971, which was adopted as an ordinance.

Franchise fees are established by state law in the Public Utilities Code (Section 6231) for which the franchise fee rates are the greater of 2% of gross receipts based on usage of the rights of way for transmission purposes, or 1% of the gross revenues derived within the community. These rates are not changeable through a local franchise agreement. As such, there is no potential for the City to extract greater franchise fees from PG&E.
oSolid Waste Franchise - The City of Foster City has a franchise agreement that includes a 5% franchise fee rate with Recology San Mateo County for collection of solid waste, recyclables, and organic materials. Practically speaking, these franchise fees are passed along to customers in their bills. As such, adjustments to franchise fees would have a direct impact on customers’ bills.
oFees for Services – The City charges fees to the community, but not-to-exceed the cost of the services provided. These fees are approved by the City Council and documented in the City’s Master Fees & Charges Schedule. The Master Fees & Charges schedule is approved annually by the City Council, and individual fees may be amended from time to time during a fiscal year. Such fees include building permits, planning charges, development impact fees, recreation programs, facilities rentals, police reports, fire inspections (Foster City collects fees on behalf of San Mateo Consolidated Fire Department), encroachment permits, and subscription fees for CalOpps, etc. The City Council has the authority to change these fees at its discretion. However, there must be a nexus to the costs of providing those services. Last year, the City completed an update of its cost allocation plan and user fee study in conformity of industry best practices to do such updates every 4-6 years.
Water and Wastewater Rates– A subset of the Fees for Services mentioned above are the rates established for water and wastewater ratepayers in Foster City (and the 94404 portion of San Mateo for water).

The revenues and the costs associated with providing those services are accounted for in Enterprise Funds for which there are strict guidelines in State law that specify that the rates must be directly relevant to the costs provided by those services. Those rates cannot subsidize other non- Enterprise fund uses. The District Board has the authority to establish these rates, which are typically set based upon annual rate studies.

Moreover, the District may establish rate- smoothing models to smooth

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rate increases over time based on planned/projected long-term costs such as significant capital improvement projects.
oWater Rates – In general, the District currently uses a rate model for water customers that implements two types of charges: a fixed cost is established as a meter charge based on the meter size provided to a property for the availability of water service to that property; the volumetric charge is established based on the consumption of water.
oWastewater Rates – These rates are implemented based on the customer type: residential customers are charged a fixed cost based on the type of residential unit (single-family vs. multi- family); commercial customers are charged a variable cost based upon the amount of water consumed by their business and the wastewater strength category for the business.
Concession Agreements – The City enters into concession agreements with private companies to provide recreation services using City parks or other amenities. These concession agreements are typically structured on a percentage-of-revenue basis whereby the City receives a “cut” of the revenues generated by the concessionaire. The City Council has the authority to establish concession agreements and their revenue structures by the agreements entered into with those organizations.

3. Sustainable Employee Compensation Models
In May/June 2023, the City completed a classification and compensation study with wage adjustments (based primarily on the market average) made for the Police Officers Association labor unit and management unit effective 6/1/2023. In addition, the City entered into three-year labor agreements with the Foster City Police Officers Association (FCPOA) and the unrepresented management unit with annual wage adjustments based the local CPI-U with a floor and ceiling of 3% and 5% respectively. As a result, these 2 units received a 4.2% COLA increase for FY 2023-24. The AFSCME labor unit reached an agreement with the City in October 2023 for the term of July 1, 2023 to September 8, 2024 and received a 5% COLA increase retroactive 7/1/2023 with the stipulation that further reviews would be conducted for its job classifications. At this time, City staff plans to use a 3% COLA placeholder in the preparation of the FY 2024-25 budget.

4. Long-Term Capital Improvement Project (CIP) Funding
The City has a long-term capital improvement project funding model whereby annual transfers from the City’s General Fund to the City’s Capital Projects Fund are made to ensure that long-term capital improvement and critical infrastructure needs are properly funded.

The City reviews its annual CIP funding needs on an annual basis as part of the Long- Term Capital Improvement Project funding analysis, and will do so again at the March 25,

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2024 budget study session. Based on prior direction from the City Council, the long-Term model has a 15-year outlook. The City has had a philosophy of “pay as you go” with respect to its funding of capital improvements.

The City Council created a Capital Asset Acquisition and Replacement Fund (CAAR Fund) for the acquisition of new capital assets and construction/replacement of significant assets. The proceeds from the sale of the North Peninsula Jewish Campus and the sale of the 15-acre site were deposited into this fund. The Fund Balance as of December 31, 2023 is approximately $3.5 million after having spent $7 million for the acquisition of 22 workforce housing apartment units in the Pilgrim Triton Phase C project in August 2022 and transferring $36 million to the City CIP Fund for the rebuild Recreation Center (the remaining $19 million came from General Fund reserves). Per City Resolution No. 2012- 75, a 4/5ths vote of the City Council is required to expend those funds.

Other capital improvement funding options could include the use of debt financing for the replacement of long-term capital assets. In fact, the City/District used debt financing for the Levee Protection Planning and Improvements project (Levee Project) as well as the Wastewater Treatment Plant project (WWTP Project) that is jointly owned by San Mateo and Foster City.

5. Funding Internal Service Funds
Another example of the City’s conservative fiscal approach is the set-aside of funds to ensure that the City’s self-insurance requirements and equipment needs in the areas of vehicle fleet, technology, buildings and other department-specific equipment are fully funded at the time of replacement.

Currently, equipment replacement costs are being funded at an 85% level, assuming that expenditure savings and interest income will make up the difference when replacement is necessary. The City generally sets aside $1 million for self-insurance purposes based on its insurance arrangement through Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA), which utilizes a third-party administrator to provide pooled liability services to member agencies. Lastly, the City has Internal Service Funds for its Longevity Recognition Benefits Fund, post-retirement medical requirements under State law (PEMHCA Fund), and compensated absences (e.g., vacation leave, sick leave) payable to employees upon separation of employment.

The establishment and prior funding of internal service funds have been decisions of prior City Councils. It is entirely within the current City Council’s discretion to determine the appropriate level of funding, if any, for the purposes mentioned above.

6. Reserve Policy
The current City Council policy is that the General Fund shall maintain a minimum 33- 1/3% to 50% of operating expenditures in its reserves (in essence, 4 to 6 months of operating expenditures) for its 5-Year Financial Plan. The City has accumulated well over the policy target levels over the years and utilized surpluses above the 100% level for

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one-time expenditures, including paying down its CalPERS unfunded accrued liability, enhancing its reserves in its City CIP Fund and Building Maintenance Internal Service Fund, and establishing a Facilities Replacement Fund. As discussed earlier in this report, the City Council authorized using $19 million of General Fund reserves for the rebuild of the Recreation Center last year. Even after setting aside this amount and aided by unspent budgets over multiple years (due largely to unfilled vacancies in tight labor markets), General Fund reserves have climbed back to the 100% level at $58.6 million.

Reserves have also been established in the Water and Wastewater Operating Funds equal to 25% of annual operating expenses. The City’s Capital Investment (CIP) fund, the Water CIP Fund, and Wastewater CIP Fund have a fixed reserve threshold of $2 million each.

Policy Assumptions and Questions

The six areas identified above require policy direction from the City Council such that the City Manager has the direction necessary to prepare a preliminary budget for City Council consideration. If, in the course of dialogue at this Budget Study Session, there are other policy areas identified that require direction, it would be helpful for the City Council to identify those policy areas and the direction necessary.

It is recommended that the City Council confirm the following assumptions or otherwise provide policy direction to the City Manager regarding the following:

1.Service Level Expectations – Unless directed otherwise, the preliminary budget projections will assess the current level of staffing for FY 2024-25 to meet City Council’s strategic directives and continue to provide the same level of services to the community. A detailed line-item budget will be submitted for City Council review at the May 13, 2024 Budget Study Session and will ultimately be approved concurrently with adoption of the City budget which is scheduled for June 17, 2024.

2.Revenue Models – City staff plans to present additional information on BLT modernization and seek City Council direction on a potential BLT ballot measure for the November 2024 general election.

3.Sustainable Employee Compensation Policies – Unless directed otherwise, the City Manager recommends that personnel services costs for the preliminary budget include a 3% placeholder for annual wage increases as well as other provisions of current MOUs.

4.Long-Term Capital Improvement Project Funding – The current funding strategy entails a detailed analysis of the long-term capital improvement project funding needs based on a 15-year forecast. This strategy assumes a “pay as you

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go” philosophy that does not anticipate the use of debt financing except as noted with the Levee Protection Planning and Improvements Project (CIP 327-657) and the Wastewater Treatment Plant Project (CIP 455-652). City staff expects to provide the long-term capital improvement project funding analysis to the City Council at its March 25, 2024 Budget Study Session. Except for the Wastewater Treatment Plant project that is currently in progress, does the City Council agree that a “pay as you go” funding model be employed that proactively funds long- term capital improvement projects from existing resources and operating transfers into capital improvement reserves?

5.Funding Internal Service Funds – The internal service funds analyses are also scheduled to be presented at the March 25, 2024 Budget Study Session. In anticipation of that session, there are three policy considerations identified for City Council consideration:
a.Equipment Replacement Funding – In regard to equipment related replacement funds (vehicle, equipment, information technology and building), the current funding strategy employs a “pay as you go” philosophy of proactively setting aside funds for replacements such that full funding of replacements is available at the time an asset is replaced.

The preliminary FY 2024-25 budget projections will continue using this philosophy. Are there other funding methods that the City Council wishes to explore or employ for the use of these funds?
b.Unfunded Obligations – The City typically performs an actuarial analysis of its Longevity Recognition defined benefit liability and Public Employees' Medical and Hospital Care Act (PEMHCA) retiree medical liability bi- annually. As of June 30, 2023, these liabilities were $3.16 million and $8.78 million respectively. The City continues to maintain internal service funds for both the Longevity Recognition and PEMHCA retiree medical funds on a cash benefit basis. As of June 30, 2023, the balances of these Funds were $2.66 million and $6.29 million respectively and the City continues to hold these funds internally and earning a substantially risk- free yield above 5%. Does the City Council wish City staff to explore options to fully fund its Longevity and PEMHCA liabilities and/or to establish irrevocable trusts for each?
c.Self-Insurance Funding – The current policy assumes that a $1 million self-insurance reserve is maintained in order to provide funding for the self-insured retention component of claims against the City. This level has provided adequate funding the prior years to ensure that funds are readily available to pay claims against the City.

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6.Reserve Policy – The current General Fund reserve policy is to maintain a minimum General Fund reserve of 33-1/3% to 50% of annual operating expenditures. The Water and Wastewater Operating Funds have minimum reserve levels of 25% of annual operating expenses, and $2 million reserve levels in each of the City, Water, and Wastewater CIP Funds. Unless directed otherwise, City staff will continue to follow this policy in the preparation of the FY 2024-25 budget and 5-year financial plan.

Budget Schedule and Next Steps

The following dates and topics have been established in developing the FY 2024-25 annual budget:
Monday, February 26 at 6:30 PM: Mid-Year Financial Review and direction from the City Council for the preparation of the FY 2024-25 preliminary budget and Five-Year Financial Plan.
Monday, March 25 at 6:30 PM: Enterprise Funds, Internal Service Funds, Capital Improvement Projects, Water and Wastewater Rates, Preliminary Master Fee Schedule, and Special Reports.
Monday, April 15 at 6:30 PM: Public Hearing on Master Fee Schedule for FY 2024-25.
Monday, May 13 at 6:30 PM: Preliminary Annual Budget and Five-Year Financial Plan (All Funds).
Monday, June 3 at 6:30 PM: Budget Public Hearing and follow-up from prior study sessions, Public Hearing and adoption of Water and Wastewater Rates, and Award of Non-Profit Agency Funding
Monday, June 17 at 6:30 PM: Annual Budget Adoption
Friday, June 28: Annual Budget and Five-Year Financial Plan Publication Conclusion
The decisions that will be made in the FY 2024-25 Annual Budget process will continue the City’s history of thoughtful stewardship of the public’s resources and preserve its path towards our long-term financial health.

Staff looks forward to working with the City Council in the months ahead as the Council discusses, deliberates, and decides on the important policy decisions necessary to secure our financial future and that make Foster City that great place where people want to live, work and play.

CALIFORNIA ENVIRONMENTAL QUALITY ACT
Not Applicable

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FISCAL IMPACT
There is no immediate fiscal impact from this report.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Innovation and Sustainability

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Foster City City CouncilFebruary 26, 2024

Foster City City Council
February 26, 2024